[Asia Economy Reporter Ji-hwan Park] The KOSPI is showing a weak trend around the 3150 level, falling nearly 1% in early trading. This is interpreted as a result of the U.S. stock market's weakness overnight due to news of tax increases. Amid a selling spree by institutions and foreigners, only individual investors are net buyers, supporting the index.
As of 9:18 a.m. on the 23rd, the KOSPI is at 3154.58, down 0.72% (22.94 points) from the previous trading day. The KOSPI started the day at 3173.47, down 0.13% (4.05 points) from the previous day, and then widened its losses.
The market appears to be affected by the U.S. stock market closing lower overnight on news of wealth tax increases under the Joe Biden administration. On the 22nd (local time), the Dow Jones Industrial Average closed at 33,815.90, down 321.41 points (0.94%) from the previous session. The Standard & Poor's (S&P) 500 index fell 38.44 points (0.92%) to 4,134.98, and the tech-heavy Nasdaq index closed at 13,818.41, down 131.80 points (0.94%).
By investor type, only individual investors are net buyers with 203.3 billion KRW. In contrast, foreigners and institutions showed net selling of 139.8 billion KRW and 71.2 billion KRW, respectively.
Among the top market capitalization stocks, most are in decline. Samsung Electronics was down 0.73% from the previous day at 81,800 KRW. SK Hynix (-2.63%), NAVER (-1.58%), LG Chem (-1.49%), and Kakao (-2.13%) also fell. On the other hand, Samsung Biologics and Celltrion rose slightly by 0.25% and 0.17%, respectively.
At the same time, the KOSDAQ is at 1021.02, down 0.46% (4.69 points) from the previous trading day. The index started the day at 1024.29, down 0.14% (1.42 points) from the previous day.
By investor type, individuals were net buyers of stocks worth 47.4 billion KRW. In contrast, foreigners and institutions were net sellers of 32.3 billion KRW and 13.2 billion KRW, respectively.
Among the top market capitalization stocks, Celltrion Healthcare (-0.24%) and Kakao Games (-1.25%) declined. Celltrion Pharm (0.27%) and EcoPro BM (0.65%) rose.
Yoon-chul Park, a researcher at Hi Investment & Securities, said, "The domestic stock market seems to be under downward pressure due to the weakness in the U.S. stock market and other factors," adding, "Attention should be paid to whether investor sentiment deteriorates due to concerns over capital gains tax increases."
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